Crowdfunding for NextBank has been dropped after the team received 1.4 Million USD from unknown private investors. With the additional 0.95 Million USD received by private VC, NextBank totaled 2.35 Million USD.

BitcoinPRBuzz informed CoinTelegraph with an email of the recent action from the NextBank team. Their article states that:

“NextBank has now stopped the public crowdfunding process. NextBank is thankful to all private investors, and those who have already invested small amounts will still be minority shareholders or may choose to have their investment refunded in full. NextBank will continue funding through venture capitalist avenues in order to ease the concerns of the public.

All those that have contributed small amounts to the $2.35 million fund will be minority shareholders or will be refunded in full. The vast majority of the fund comes from private angel investors.”

Insufficient Funds

CoinTelegraph covered the NextBank entrance on the scene exactly one month ago, by expressing perplexity regarding the way people behind this project are working, especially regarding the quantity of funds to start such a large project, that would offer essentially any service you can think of from a bank.

From the PRBuzz article it seems that the soon to be bank didn’t drop any of the services originally planned.

The PRBuzz article also states that NextBank team has completed the “innovative software”, however, it’s also worth noting that after one month since its appearance, the NextBank website is still only showing a front page without a news section, an about section, or even a FAQ section, and after trying to register, the author of this article didn’t receive an email response.

The project’s Facebook page gives some news… but not about NextBank: just about anything else, but NextBank is completely invisible in what could be the only place with some update. They didn’t even update about the starting of the crowdfunding campaign and the halting of it.

This massive project only gives a single “PR” person as a contact: Simon Peltin, but it is impossible to find anytrace of this person on the internet, Skype as well doesn’t show any result.

Still Inconsistent

This whole thing still looks terribly hollow, and it’s the opinion of our consultant Simon Dixon, CEO BnkToTheFuture, that these people, even if the project isn’t a complete scam, could already be facing serious legal problems:

"Starting a bank is one of the hardest regulatory challenges one can take. To get a banking license you will need an incredible understanding of financial regulations and banking experience to pass the regulators and central banks licensing requirements. So far I can see three problems already that would get them in trouble with regulators. Firstly, they are raising finance illegally through their website inviting any investor to invest without using an exemption, filing a public offering or using a platform registered with a regulator like BnkToTheFuture.com. This is in breach of most financial securities acts.

Secondly, the name 'Bank' can only be used once they have secured a banking license. Add this to the fact that we don't know who is behind it.

It looks like either a team of inexperienced founders with little regards for the law,that won't get them their license or simply a group of anonymous people tricking investors out of their money. I hope I am wrong, I want to see new banks challenge the status quo, but nothing adds up here. I welcome comment from the team telling me otherwise."

CoinTelegraph has sent an email to [email protected], that should be read by Simon Peltin, PR, NextBank Formation Company, the only possible contact with the company, but at the moment of publication no answer arrived.
CoinTelegraph will be glad to publish their answer to our doubts in case this should come.